Re-mortgage for home improvements advice

Deeko01

Hello,

Could really do with some help please, I would really like to remortgage the house I live in with family as it is getting tired and could benefit from modernising but I have some issues that I think will mean it will not be possible to remortgage. Anyway here goes:

Current outstanding mortgage £160K
House Value = £190K

House in my wife's name, we both have bad credit and she had a trust deed which completed 2 years ago. I have defaults in my credit file. We also made a stupid decision to take a loan with Welcome Finance secured against the house which has £8K to go though they have said they would accept £4K as full and final settlement as I had this since 2008.

I earn £50K and she earns £70K, I know we can afford to remortgage but who will remortgage us with bad credit.

I don't know how LTV works so not sure even if we could get it, what would be allowed? £15K, £20K??

Any help appreciated.

Many thanks.

Number75

With £120K combined salary and only a £160K mortgage, why are you not able to just save up and pay for your intended improvements?

I don't understand why you're looking for more debt when you have approx £5500 net between you each month?

ACG

I think you would be lucky to get £10k.

£190k, 90% LTV is £171k.
£171k - £160k = £11k which is best case scenario.
However, you also say you have a secured loan for £8k. Assuming Welcome finance allow you to increase the size of the mortgage, anything more than £3k puts you in negative equity, which I can not see any mortgage lender agreeing to.

That is before you take into account the adverse.

I think there is a lot more to contend with than you have mentioned as I can not understand why you want to secure finance for as little as £15k when your household income is £120k a year.